Hong Kong could raise HK$2 flat fare in discounted public transport scheme for elderly, disabled
- Welfare chief Law Chi-kwong says the HK$2 flat rate could be reviewed every five years in future to adjust for inflation
- Spending on the scheme is expected to rise sevenfold by 2031, after lowering age threshold and including more transport options
Hong Kong could raise the flat-rate fare of a discounted public transport scheme benefiting elderly and disabled people to reduce the government’s financial burden, the city’s welfare chief has said.
The fare concession scheme currently allows those aged 65 and above, as well as disabled residents, to pay just HK$2 (US$0.26) per trip on designated public transport such as the MTR system, franchised buses, ferries and green minibuses.
The scheme, launched in 2012, has recently been extended to cover those aged between 60 and 64 by the first quarter of 2022. Red minibuses, ferry services to outlying islands, and the city’s iconic tram service will also be included in the scheme.
The most important thing is to take inflation into consideration, especially to make sure the fare increase is on par
The government’s spending on transport concessions was projected to surge sevenfold over 13 years, from HK$1.2 billion in 2018 to HK$8.6 billion in 2031 as a result of the extension, according to a review commissioned by authorities published on Tuesday.
Secretary for Labour and Welfare Law Chi-kwong said on Sunday the HK$2 flat rate could be reviewed every five years in future to adjust for inflation.
Hong Kong to press on with HK$2 public transport scheme extension
“It may cost HK$2.20, or HK$2.50, or even up to HK$3,” Law told a television programme. “The most important thing is to take inflation into consideration, especially to make sure the fare increase is on par.”
Lowering the age threshold from 65 to 60, a plan that was delayed by two years after the policy was first promised in early 2020, and expanding the scheme to more transport options, is likely to increase the government’s financial burden.
Lawmaker Michael Tien Puk-sun, a former chairman of the Kowloon-Canton Railway Corporation, said the government had to adjust the flat rate to keep the scheme sustainable.
He had previously suggested at a Legislative Council panel meeting in July that the government increase the concession fare by 50 HK cents every five years to keep up with inflation and the city’s growing ageing population.
“How can the government sustain a flat HK$2 fixed fare forever?” Tien said on Sunday about the scheme, which has been unchanged for eight years.
He also recommended the government introduce a slight fare increase in conjunction with lowering the age threshold by early next year. He believed elderly residents would accept a 50 cent increase to HK$2.50.
